Activant Solutions Inc., a provider of vertical business management solutions, has agreed to acquire Prophet 21 Inc., a technology solutions provider to the wholesale distribution market, for approximately $215 million. Prophet 21's 3,400 supported customers will enhance Activant's position as a provider in the wholesale distribution segment, which complements Activant's current position in the hardware and home center, automotive aftermarket and lumber and building materials vertical markets.
"This latest acquisition is part of Activant's ongoing growth strategy to become the premier provider of vertical business management solutions, serving small and medium-sized businesses," said Larry Jones, CEO of Activant Solutions. "Prophet 21's next-generation business management solution, CommerceCenter, and e-commerce offering, Trading Partner Connect, give Activant a more comprehensive solution set that deepens our market expertise and leadership in the wholesale distribution industry."
Since 1967, Prophet 21 has worked with distributors in many wholesale distribution verticals, such as industrial, fasteners, electrical, fluid power, medical, HVAC, plumbing, tile, paper, packaging, janitorial and other vertical segments. CommerceCenter, Prophet 21's software solution, includes features such as: order and inventory management, purchasing, pricing, financial management, customer relationship management, business reporting and analysis, e-business, and warehouse management.
Activant will continue to support and enhance Prophet 21 products as well as Activant’s current wholesale distribution offerings, including Activant Prelude and Activant Eagle for Distribution. Customer contact information will remain the same. Prophet 21 also offers e-commerce services to simplify trading among distributors.
Prophet 21's Trading Partner Connect gives distributors an Internet trading network that streamlines the commerce process between distributors, their manufacturers/suppliers, and end-users.
Under the terms of a definitive merger agreement, Prophet 21 will merge with a newly formed subsidiary of Activant. As a result, Activant will become the owner of all of the outstanding stock of Prophet 21. The transaction is expected to close in mid-September, 2005, subject to the satisfaction of certain customary closing conditions.